Analyzing customer churn in Power BI

Caso di studio: analisi del churn dei clienti in Power BI

Iason Prassides

Content Developer, DataCamp

What is a case study?

Apply your skills
No new concepts
Solve a real-world problem

Prerequisite courses:

Introduction to Power BI

Introduction to DAX in Power BI

Data Visualization in Power BI

Working lady

Data analysis flow in Power BI

Data analysis flow

Data analysis flow in Power BI

Data analysis flow

Check for duplicate or missing values
Do a sense check with other internal data sources

Data analysis flow in Power BI

Data analysis flow

Ask yourself the right questions
Build your first visualizations

Data analysis flow in Power BI

Data analysis flow

Choose the right visualization to convey a message
Perform more advanced analysis

Data analysis flow in Power BI

Data analysis flow

Combine visualizations in one or more dashboards

Data analysis flow in Power BI

data analysis flow

Communicate your insights to stakeholders

The problem

Solving customer churn

A fictitious dataset about churn from a Telecom provider (Databel)
Your task: discover why customers are churning

$$ Customer attempting to leave

Defining churn

The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity

Leaky bucket problem
Keeping customers is easier than getting new customers
Reducing churn is a priority for many companies

Leaky bucket problem

¹ https://www.investopedia.com/terms/c/churnrate.asp

Calculating churn

Simplified formula

Churn rate = customers lost / total number of customers

Churn rate = 10 / 100

10 / 100 = 10%

There are multiple ways to calculate churn

Varies by industry and revenue model
An e-commerce platform could e.g. define a churner as someone who hasn't made a purchase in the last 12 months

The data

Key characteristics

Databel, a fictitious Telecom provider
One big table containing 29 columns
One row per customer
Snapshot of the database at a specific moment in time

Antenna being used for communication

The data

Dimensions

Column name	Description
Customer_id	The unique ID that identifies a customer
Churn Label	Contains 'Yes' or 'No' to indicate if a customer churned.
Demographic fields	Age, Gender, State, ...
Premium plans	Unlimited Data, International Plan, ...
...	...

The data

Measures

Column name	Description
Total charges	Sum of all monthly charges
Monthly charge	The average of all monthly charges billed to the customer
Extra data charges	Extra charges for data downloads above the specified customer plan
Extra international charges	Extra charges for international calls for customers not on an international plan
Customer service calls	Number of calls made to customer service
...	...

Metadata sheet

Let's start analyzing!

Caso di studio: analisi del churn dei clienti in Power BI